GBPUSD Price Swings Driven by Looming Brexit Vote

GBPUSD IMPLIED VOLATILITY – TALKING POINTS

Derived trading ranges suggests that GBPUSD could climb as high as 1.3287 or fall as low as 1.2975 with the Sterling’s next direction highly dependent on the meaningful vote’s outcome expected around 19:00 GMT

While the update initially sent spot GBPUSD soaring on the prospect of a timely soft-Brexit, gains quickly reversed when headlines crossed the wires that British Attorney General Geoffrey Cox’s legal opinion went effectively unchanged.

Trading ranges derived from overnight implied volatility suggests that GBPUSD could climb as high as 1.3287 or fall as low as 1.2975. The cable’s direction from here is highly dependent on the upcoming meaningful vote slated for 19:00 GMT. GBP bulls will likely cheer if the PM’s deal garners enough support while defeat could create additional uncertainty over the Brexit Timeline and send the currency swooning lower.